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CAS3701 Assignment 12 (Detailed Answers & Solutions) Due 4 OCTOBER 2024 $2.81   Add to cart

Exam (elaborations)

CAS3701 Assignment 12 (Detailed Answers & Solutions) Due 4 OCTOBER 2024

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Questions QUESTION 1 1. INTRODUCTION Rhino Cellular Ltd (“RhinoCell”) is a South African based manufacturer and retailer of low-cost smart phones. RhinoCell was founded in 2011 in response to the uptake of smart phones in the South African market. The company quickly saw a market opportu...

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  • September 28, 2024
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  • 2024/2025
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CAS3701

Assignment 12

DUE 4 October 2024

Detailed Answers & Solutions

, TASK 1
a) Cost per Unit Calculation for Each EnduroPro94 Smart Phone
To calculate the cost per unit of the EnduroPro94 smartphone, we need to determine
the cost of each material/input used in the production of one phone. The total cost per
unit will include the cost of cobalt, other metals, labour, other materials, and allocated
manufacturing overheads.


𝑴𝒂𝒕𝒆𝒓𝒊𝒂𝒍𝒔/𝑰𝒏𝒑𝒖𝒕𝒔 𝒑𝒆𝒓 𝑺𝒎𝒂𝒓𝒕 𝑷𝒉𝒐𝒏𝒆:
• 𝐶𝑜𝑏𝑎𝑙𝑡: 0.5 𝑘𝑔
• 𝑂𝑡ℎ𝑒𝑟 𝑀𝑒𝑡𝑎𝑙𝑠: 1.2 𝑘𝑔
• 𝐿𝑎𝑏𝑜𝑢𝑟: 3 ℎ𝑜𝑢𝑟𝑠
• 𝑂𝑡ℎ𝑒𝑟 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠: 1 𝑢𝑛𝑖𝑡


𝑪𝒐𝒔𝒕𝒔 𝑷𝒆𝒓 𝑴𝒂𝒕𝒆𝒓𝒊𝒂𝒍/𝑰𝒏𝒑𝒖𝒕:
• 𝐶𝑜𝑏𝑎𝑙𝑡: 𝑅150 𝑝𝑒𝑟 𝑘𝑔
• 𝑂𝑡ℎ𝑒𝑟 𝑀𝑒𝑡𝑎𝑙𝑠: 𝑅100 𝑝𝑒𝑟 𝑘𝑔
• 𝐿𝑎𝑏𝑜𝑢𝑟: 𝑅80 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
• 𝑂𝑡ℎ𝑒𝑟 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙𝑠: 𝑅50 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡


Calculating the total cost per unit:
1. 𝑪𝒐𝒃𝒂𝒍𝒕 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕:
0.5 𝑘𝑔 × 150 𝑅/𝑘𝑔 = 75 𝑅
2. 𝑶𝒕𝒉𝒆𝒓 𝑴𝒆𝒕𝒂𝒍𝒔 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕:
1.2 𝑘𝑔 × 100 𝑅/𝑘𝑔 = 120 𝑅
3. 𝑳𝒂𝒃𝒐𝒖𝒓 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕:
3 ℎ𝑜𝑢𝑟𝑠 × 80 𝑅/ℎ𝑜𝑢𝑟 = 240 𝑅
4. 𝑶𝒕𝒉𝒆𝒓 𝑴𝒂𝒕𝒆𝒓𝒊𝒂𝒍𝒔 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕:
1 𝑢𝑛𝑖𝑡 × 50 𝑅/𝑢𝑛𝑖𝑡 = 50 𝑅1
𝑴𝒂𝒏𝒖𝒇𝒂𝒄𝒕𝒖𝒓𝒊𝒏𝒈 𝑶𝒗𝒆𝒓𝒉𝒆𝒂𝒅𝒔 𝑨𝒍𝒍𝒐𝒄𝒂𝒕𝒊𝒐𝒏:
𝐵𝑢𝑑𝑔𝑒𝑡𝑒𝑑 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑𝑠 = 𝑅2,400,000
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑏𝑜𝑢𝑟 ℎ𝑜𝑢𝑟𝑠 = 120,000 ℎ𝑜𝑢𝑟𝑠
𝑂𝑣𝑒𝑟ℎ𝑒𝑎𝑑 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 = 2,400,000/120,000 = 20 𝑅
3 ℎ𝑜𝑢𝑟𝑠 × 20 𝑅/ℎ𝑜𝑢𝑟 = 60 𝑅

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